FACTORS SHAPING THE ORGANIZATIONAL AGILITY OF FAMILY BUSINESS

Abstract

As the largest contributor to Indonesia’s GDP, the dynamic of Family Business is an interesting subject to be researched. The tougher competition as the economy recovers post covid-19 and also a more open economy, bring challenges for family businesses to survive or thrive. Family business need to be more agile to respond any threat of its existence. The research is conducted to determine the effect of Social Capital (X1), Family Business Innovation (X2), and Dynamic capabilities (X3) on Organizational Agility (Y). The research is conducted using the quantitative method to 180 Respondents who are family business members, by utilizing the purposive sampling method and multiple linear regression to analyze the factors that provide significant effects on organizational agility. All three factors are found to be reliable and valid. The result of the research presents the positive and significant influence of those three independent variables on Organizational Agility in Family Businesses.

Keywords: Social Capital, Family Business Innovation, Dynamic Capabilities, Organizational Agility, and Family Business